Presented below are two independent situations: a) On December 31, 2021, Legault Corporation had $1,000,000, 8% bonds payable issued. The bonds pay interest on January 1 and June 1 of each year, and mature on January 1, 2021. On January 2, 2022, Legault redeemed 60% of these bonds at 101. The amortized cost of the entire bond issue on the retirement date was $1,026,000. The interest payment due on January 1, 2022, has been made and recorded. b) Antonio Inc. redeemed $500,000 of its bonds at 98 on December 31, 2021. The amortized cost of the bonds on the retirement date was $497,500. The bonds pay semi-annual interest and the interest payment due on December 31, 2021, has been made and recorded. Instructions For each of the independent situations, prepare the journal entry to record the retirement of the bonds.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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answer in text form please (without image),   Note: .Every entry should have narration please

Presented below are two independent situations:
a) On December 31, 2021, Legault Corporation had $1,000,000, 8% bonds payable issued. The
bonds pay interest on January 1 and June 1 of each year, and mature on January 1, 2021. On
January 2, 2022, Legault redeemed 60% of these bonds at 101. The amortized cost of the
entire bond issue on the retirement date was $1,026,000. The interest payment due on
January 1, 2022, has been made and recorded.
b) Antonio Inc. redeemed $500,000 of its bonds at 98 on December 31, 2021. The amortized
cost of the bonds on the retirement date was $497,500. The bonds pay semi-annual interest
and the interest payment due on December 31, 2021, has been made and recorded.
Instructions
For each of the independent situations, prepare the journal entry to record the retirement of
the bonds.
Transcribed Image Text:Presented below are two independent situations: a) On December 31, 2021, Legault Corporation had $1,000,000, 8% bonds payable issued. The bonds pay interest on January 1 and June 1 of each year, and mature on January 1, 2021. On January 2, 2022, Legault redeemed 60% of these bonds at 101. The amortized cost of the entire bond issue on the retirement date was $1,026,000. The interest payment due on January 1, 2022, has been made and recorded. b) Antonio Inc. redeemed $500,000 of its bonds at 98 on December 31, 2021. The amortized cost of the bonds on the retirement date was $497,500. The bonds pay semi-annual interest and the interest payment due on December 31, 2021, has been made and recorded. Instructions For each of the independent situations, prepare the journal entry to record the retirement of the bonds.
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